HONG KONG--(BUSINESS WIRE)-- The Chinese insurance market is in a state of transition: after a period of rapid expansion, the market must now adjust for sustainable and healthy growth. Since enhancing risk management and market discipline in recent years, China’s regulator has gradually rolled out plans for solvency reform, less restrictive investment rules, the opening of compulsory motor insurance to foreign players and the partial liberalization of commercial motor rates, according to a new report from A.M. Best Co.
These developments are paving the way for more sophisticated underwriting practices and offsetting market issues brought on by the previous fast expansion. At the same time, regulatory requirements, business growth, competition, and enhancements to operational, underwriting and distribution systems are all driving the continuing demand to increase capital.
This report examines recent developments in both the Chinese life and non-life market, as well provides an overview of the reinsurance sector, as China’s insurance industry seeks to move forward to meet the challenges of the next phase of market growth.
For a full complimentary copy of this report, please visit www.ambest.com/press/100803chinaspecialreport.pdf.
Founded in 1899, A.M. Best Company is the world's oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.
Copyright © 2012 by A.M. Best Company, Inc. ALL RIGHTS RESERVED.
A.M. Best Co.
Michael Wong, +852-2827-3418
Senior Financial Analyst
Rachelle Morrow, +1-908-439-2200, ext. 5378
Senior Manager, Public Relations
Jim Peavy, +1-908-439-2200, ext. 5644
Assistant Vice President, Public Relations
Source: A.M. Best Co.